Livspace secures $70m in series C

Livspace operates four large and 20 mini experience centres, and expects to double this by the end of FY19 to almost 50 with a mix of large and small centres.

BENGALURU: Online home design startup Livspace has secured $70 million in a series-C round led by private equity firm TPG Growth and Goldman Sachs, making it one of the biggest funding rounds in the vertical ecommerce space in the recent past. The round also saw participation from existing investors such as Jungle Ventures, Bessemer Venture Partners and Helion Ventures.

The transaction, which was advised by Avendus Capital, has valued the four-year-old company at around $250-300 million, according to sources familiar with the matter.

The company, which has designed close to 6,000 homes since it was founded in 2014, expects to exit this fiscal year with an annualised revenue run rate of $125-135 million. The company has seen four times increase in its topline over the past 18 months, with number of active homes under redesign tripling from around 500 last year to 1,500-1,600 right now.

The newly-secured financing will be used to strengthen the company’s offline footprint along with marketing and branding spends. The company, which is profitable in Bengaluru, Mumbai and Delhi with its offerings making approximately 40% contribution margin, plans to expand its presence to Pune and Chennai in the coming months. Livspace recently launched operations in Hyderabad.

Livspace operates four large and 20 mini experience centres, and expects to double this by the end of FY19 to almost 50 with a mix of large and small centres. It also has plans to foray overseas.

“Our design experience centres have given us several leads and have also helped us understand our customer preferences better,” said Anuj Srivastava, chief executive of Livspace, underscoring the importance of their brick and mortar presence. “This data has helped us understand what our future design centres and omnichannel strategy would look like.”

Founded by Srivastava and Ramakant Sharma, Livspace provides an end-to-end design solution to homeowners and clocks an average order value of Rs 10-12 lakh per home designed. Srivastava and Sharma are former senior executives at Google and Myntra, respectively.

Other companies that operate in this space include the likes of Homelane, which recently launched its first experience centre in Gurgaon. Even online furniture companies such as Pepperfry and Urban have been focused on expanding their offline footprint.

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